A new politics: cutting ministerial pay

Prime Minister David Cameron and Deputy Prime Minister Nick Clegg have made a clear commitment to cutting the cost of government.

Prime Minister David Cameron and Deputy Prime Minister Nick Clegg have made a clear commitment to cutting the cost of government, including urgent action to begin reducing the deficit this year.

As part of this process of cutting costs, the Prime Minister is today announcing that new ministers will be paid 5% less than ministers received in the previous administration.

In addition, the government will impose a subsequent ministerial pay freeze for the lifetime of the Parliament - effectively a further pay cut when inflation is taken into account.

The 5% reduction in Cabinet Minister salaries alone will save taxpayers approximately £50,000 this year - and approximately £300,000 will be saved this year when all government ministerial positions are taken into account.

Over the lifetime of the Parliament, the ministerial salary cut and subsequent pay freeze will save approximately £3 million.

Salary changes - ministers in the House of Commons

Combined ministerial and Parliamentary salaries under current government

Annual pay cut

Prime Minister

£150,000

£142,500

£7,500

Cabinet Minister

£141,647

£134,565

£7,082

Minister of State

£103,937

£98,740

£5,197

Parliamentary Under-Secretary of State

£94,142

£89,435

£4,707

Salary changes - ministers in the House of Lords

Office

Ministerial salaries under previous administration

Ministerial salaries under current government

Annual pay cut

Cabinet Minister

£106,356

£101,038

£5,318

Minister of State

£83,043

£78,891

£4,152

Parliamentary Under-Secretary of State

£72,326

£68,710

£3,616

Notes to editors

Ministers sitting in the Commons receive both a Parliamentary salary and a ministerial salary; Lords ministers receive only a ministerial salary.

We are cutting the total remuneration - the Parliamentary and ministerial salaries combined - of all ministers by 5% relative to that received in the previous administration. This will be achieved by maintaining Parliamentary salaries to the entitlement for 2010-11 (£65,737), with the salary reduction taken in full from the ministerial element of the combined total. This means that all MPs will be paid the same - with the pay cut being implemented through the ministerial salary entitlement.